| The advantage of "distressed properties" does not go | | | | the fact that they are already losing money in the |
| unnoticed. Homes that have either gone through | | | | transaction. |
| foreclosures or short sales is a tremendous | | | | You should also have a professional appraiser |
| opportunity for buyers to buy a property at a | | | | appraise the house's worth for fair market value price |
| tremendous discount, often ranging from 30 to 60 | | | | in case you sell the property in the future. Although you |
| percent off their actual market value. But there is a | | | | might have bought the house for a bargain price does |
| downside as well. | | | | not mean you cannot sell your property for the full |
| The process of owning these types of sales is a | | | | market value down the future. |
| different dynamic than traditional sales. It has more | | | | Homebuyers pursuing foreclosed and short sale |
| paperwork, and a longer transaction process. An old | | | | houses should also have their finances in order and |
| saying should also be remembered, "You get what | | | | ready to go because with distressed properties, time is |
| you pay for." Many distressed houses are neglected | | | | of the utmost importance. If qualifying for a loan, make |
| properties due to past owner's inability to invest into | | | | sure to give yourself 1-3 week of a time frame to get |
| their homes. | | | | approved, if paying in cash, make sure funds are |
| It is with immense importance that potential buyers | | | | immediately available. |
| interested in distressed properties perform the | | | | Buyers who are already pre-approved with their |
| necessary due diligence to protect their investment by | | | | finances has the best chance of getting the property in |
| getting the property inspected before making any | | | | case there are multiple offers from other buyers. |
| offer to the property. Inspectors will inform in detail the | | | | Remember, banks want to get rid of distressed |
| condition of the house, the structure's soundness, and | | | | properties that are causing them to lose money, so |
| problems that could arise to be costly repairs in the | | | | banks do not care about contingencies, such as selling |
| future. Homebuyers should realize the importance of | | | | your current home before purchasing another. A buyer |
| this because banks sells foreclosed or short sales | | | | ready to go in a multiple offer is probably the one |
| houses as is, without any allowance for repair due to | | | | who's going to get the sale. |